(a)[2]
State two drawbacks of a standard costing system.
(b)[12]
Calculate the following variances: (i) direct materials price (ii) direct materials usage (iii) direct labour rate (iv) direct labour efficiency (v) fixed overhead expenditure (vi) fixed overhead volume.
(c)[8]
Prepare a statement that reconciles the budgeted cost of producing 4800 tables with the actual cost.
(d)[3]
Advise the directors on whether they should make these changes. Justify your answer.